Finance

U.S. monetary government dies by suicide as agency faces fraud claims

BOSTON (Reuters) – The co-founder of a Florida monetary agency going through investor lawsuits alleging securities fraud has died by suicide, and a spokesperson on Monday denied wrongdoing, saying the demise was not linked to a category motion lawsuit filed final week.

FILE PHOTO: The seal of the U.S. Securities and Change Fee (SEC) is seen at their headquarters in Washington, D.C., U.S., Could 12, 2021. Image taken Could 12, 2021. REUTERS/Andrew Kelly/File Photograph

Eric Holtz, the 54-year-old co-founder of the Seeman Holtz Household of Corporations in Boca Raton, took his personal life on Friday in California, the corporate spokesperson confirmed.

Lawsuits declare that Holtz, enterprise associate Marshal Seeman and their insurance coverage and monetary agency defrauded aged traders in South Florida utilizing life insurance coverage policy-backed notes.

The latest, a category motion filed June 7 in South Florida federal court docket on behalf of 76-year-old Broward County resident Fanny Millstein, alleges the agency bought securities with out correct licenses or exterior controls, leading to unreturned funds.

The Seeman Holtz spokesperson stated that the corporate had solely discovered of this lawsuit on Monday. “We deny any allegations of wrongdoing and imagine this case is with out benefit,” he wrote.

“There isn’t a indication that Eric’s tragic passing is in any manner associated to this submitting,” he added.

The Seeman Holtz funding notes, which the agency known as “longevity linked belongings,” have been described as collateralized by life insurance coverage insurance policies issued to 3rd events that promised to pay a “substantial premium” upon the demise of the insured, in line with the category motion.

The notes have been bought as protected and straightforward to money out of at maturity, in line with the lawsuit. However Millstein was informed that the agency was present process “monetary issues” and wanted extra time to return her cash, which by no means occurred, in line with the category motion.

“The consequences have been devastating for Plaintiff. At age 76, Fanny Millstein shouldn’t be compelled to ponder that her and her husband’s life financial savings invested with Seeman Holtz have vanished,” the lawsuit stated.

Legal professional Scott Silver, who represents plaintiffs within the class motion, stated his staff had spoken to just about 100 traders with related experiences. They signify greater than $100 million invested within the Seeman Holtz securities, and Silver believes the precise greenback quantity is way higher.

The lawsuit stated the agency has been “unwilling or unable” to supply details about the worth of the notes or the belongings.

The brand new class motion follows related pending lawsuits filed earlier this 12 months by Silver and different attorneys in Palm Seashore County Circuit Court docket. The Seeman Holtz spokesperson stated the corporate additionally denies the allegations in these lawsuits.

Seeman, president of Seeman Holtz, didn’t reply to direct messages searching for remark.

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